Rockhopper Looking good part 2!

Well far be it for the Blog to witter on and say we foretold this but we did say it was looking good!


RNS Below!

Now it’s back to work for me.

Embargoed: 0700hrs, 21 March 2011

Rockhopper Exploration plc

(“Rockhopper” or the “Company”)

14/10-4 Appraisal well update

Rockhopper Exploration, the North Falkland Basin oil and gas exploration company, is pleased to provide the following update on the 14/10-4 appraisal well.

  • Significant reservoir package and hydrocarbon column encountered
  • 33m (108 ft) net pay in good quality reservoir with 20% average porosity
  • Top reservoir encountered 66m (216ft) downdip from 14/10-2
  • Oil Water Contact at 2477m true vertical depth subsea (2503m measured depth) in main fan indicates to the Company that the southern main sea lion fan is full to spill
  • Company believes P90 increased significantly
  • Company has significantly increased confidence in commerciality
  • Oil indicated as medium grade similar to 14/10-2
  • Downhole mini Drill Stem Test successfully flowed oil into the well and indicates better potential flow rates and producibility than at 14/10-2

14/10-4 was drilled 2.3 km WNW of the 14/10-2 discovery well to a total depth of 2801 metres (drilled depth) within the Sea Lion discovery area, and was the first appraisal well on the Sea Lion feature, designed to investigate reservoir presence and oil column at a downdip location.

The well has been successful, proving a thick, high quality reservoir package, a substantial oil column and recognition of the first oil-water contact in the licence to date. The geological prognosis came in very close to prediction.

The top Sea Lion reservoir sands were encountered 66m (216 ft) downdip from the 14/10-2 discovery well. A total reservoir package of 107m (351 ft) comprising four main sands was encountered with a net to gross of 76%. Average porosity is 20% and permeability is over 100 millidarcies.

30m of net pay has been encountered in the upper of the four sands, representing the main Sea Lion southern fan.  The gross oil column now proven in the main Sea Lion southern fan is 104m (341 ft).

3 metres of net oil pay is present in the lower sands; these thin oil sands are below the water leg of the upper sands indicating at least one additional oil column. The lower fan encountered in 14/10-2 was neither strongly developed nor prognosed at this location, but the thin lower oil sands at 14/10-4 confirm prospectivity for lower fan sequences developed elsewhere downdip.

A mini-DST (wireline drill stem test) was performed using a dual-packer MDT tool over a one metre interval at 2486 metres (drilled depth) within the oil column. This test successfully flowed oil into the wellbore, providing additional samples and pressure build-up data. These data indicate that flow rates and producibility at the location could be significantly better than at 14/10-2.  A single MDT sample chamber was opened on the rig and initial wellsite analysis indicates a medium grade oil similar to that in 14/10-2.

An oil-water contact (OWC) is indicated from cores, wireline logs and MDT pressure and sampling data at a depth of 2503 metres drilled (2477 metres true vertical depth subsea).

The northern fan penetrated by the 14/10-3 well is represented as a thin sand at the base of the main section at this location. The sand was within the water column. Potential remains in the main northern fan updip of this location.

57.5 metres (189 feet) of conventional core was cut in two cores from near the top of the reservoir with 100% recovery. The extensive reservoir information from cores, wireline logs, seismic and wireline MDT test data is being evaluated to establish reservoir extent across the area for both the Upper and Lower fan systems.

Rockhopper believe the results of this successful first appraisal well will significantly increase the contingent P90 volume for this oil discovery. The P50 and P10 contingent volumes will be defined as the appraisal programme progresses through the remainder of 2011.

The well will now by plugged and abandoned as planned.  The Ocean Guardian semi-submersible rig will then proceed to drill the Ninky prospect in which Rockhopper has a non-operated 7.5% working interest. Following completion of the Ninky well, Rockhopper intends to drill a minimum of three further appraisal wells on the Sea Lion feature.  The Company is currently considering extending that campaign to include additional appraisal and exploration wells.

Following this well, Rockhopper will commence work on development planning for the Sea Lion discovery.

Samuel Moody, Chief Executive, commented:

“Following this positive result we believe Sea Lion is highly likely to prove commercially viable.  The well has confirmed our ability to identify good reservoir units on the seismic in our acreage with the sands coming in very close to prognosis. We can now continue to appraise the Sea Lion discovery and to explore additional prospectivity within our acreage with added confidence.”


Rockhopper Exploration plc

Sam Moody – Chief Executive

Tel. +44 (0)20 7920 2340 (via M: Communications)

M: Communications

Patrick d’Ancona or Ben Simons

Tel. +44 (0)20 7920 2340

Canaccord Genuity Limited

Charles Berkeley / Henry Fitzgerald-O’Connor

Tel. +44 (0) 20 7050 6500

Notes to Editors

Rockhopper was established in February 2004 with a strategy to invest in and carry out an offshore oil exploration programme to the north of the Falkland Islands. The Company floated on AIM in August 2005 and holds a 100 per cent. interest in four offshore production licences: PL023, PL024, PL032 and PL033 which cover approximately 3,800 sq. km. Rockhopper has also farmed in (7.5% working interest) to licences PL003 and PL004, which are operated by Desire Petroleum. These licences have been granted by the Falkland Islands government.

An extensive work programme has been carried out over a number of years on the licences operated by Rockhopper. This has included 2D and 3D Seismic and Controlled Source Electromagnetic Mapping (CSEM). In February 2010, the Ocean Guardian drilling rig arrived in Falkland waters to carry out a multi-well drilling campaign. Rockhopper drilled an exploration well on its Sea Lion prospect during April and May 2010, the result of which was the first oil discovery and Contingent Oil Resource in the North Falkland Basin. The Sea Lion discovery was successfully tested during September 2010 and was the first oil to flow to surface in Falkland Islands waters. Rockhopper has contracted seismic vessels MV Polarcus Asima and Nadia to carry out a 3D seismic survey, beginning December 2010, over areas of licences PL024, PL032 and PL033 which were not previously defined by 3D, as well as adjacent areas.

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  1. 13thMonkey says:

    Yes Dan, you made a great call. Well done, and thank you very much!

  2. Barnstonpickle says:

    Dan Dan you are the man never scared to carry the can!!

    Well done mate great calls on GKP and Rockhopper.
    I can’t thank you enough there’s loads of investors out there mate that owe you a drink well to be honest more than a drink. You’ve been brilliant mate what a gentlemen top Blog and top man Dan.


  3. citytrader says:

    Stop gloating Daniel it doesn’t become you.
    Well done on rkh. Chalk another one up for you.


  4. Stanonthebuses says:

    You cockney git.

    First ever comment on here Dan. Been following you for quite some time. Thought it was all a Blag @ the beginning of this year when one of my trader mates sent me the link but after 3 months of reading your posts I now realise how silly I’ve been listening to rubbish on Interactive what a donkey.
    I bought RKH last week @ 218pafter your post sold this morning at 331p a profit of £7562.75p. My best ever trade. Your post tipped me over into a buy as I’d sat on the side-lines while every thing you posted became true thats when I knew you were the real deal. I know you’ll never get every call right there will always be ones that go wrong look at Libya who could of foreseen that mess?
    Thumbs Up for Dan


  5. Fairygodmother says:

    ReNeuron Group (strong buy )!!!!! good news coming very soon
    so a rene lab rat tells me .can’t say any more

  6. OILBUG says:

    mmmmmm sounds like the trading mob Dan spoke about.

    well bit disappointed not on the results but the share price.

    £3.15 was the placement and £3.80 was pre news on rkh exploration well.

    what do you think Dan is it MMs, day traders profit taking and will it do another trading days profit like GKP has done.


    • Brokerman says:

      Well at the moment there’s a buzz on this stock but like all hot stocks they eventually cool. There will be some new Broker notes released over the coming hours/days as all try to quantify what the news means for the sp. Ergo the company. They are as you rightly point out below the placement. RKH are the best of the bunch at th emoment down in the Falklands. I’m not invested as I see less risk else-where but rkh would be the only Falklands explorer I’d consider if I had the capital to invest.


  7. JDS says:

    Dan – are you going for the “Treble”… MTA news this week too!!!

    • Brokerman says:

      I’m very relaxed here and expect MTA are as we say “at the bollocks” there’s good news coming but MTA are terrible when it comes to time-lines.
      Lot of people have got sick of the wait and sold can’t blame them as the good news promised at Xmas has still not been released. What we have had is a drip-feed of good news with hints and company comment through oilbarrel/oilvoice etc. Not the best way to enhance investor relations.


      • Lt says:

        I think that is your first appropriate and realistic post re Matra Dan.
        It looks like Matra’s lacklustre performance has truly sunk in.
        What are you expecting in the 2010 end of year results? If they don’t include flow rates then the SP will only go one way unless a Rabbit in the form of an acquisition is pulled from the hat!!!

      • john says:

        Dan so you sound like you have washed your hands with mta? sounds like you have given up on them to me or lost faith in the fundamentals. Many of us followed your buying tip to mta looks like you have pumped and dumped them.

        • Brokerman says:

          It never ceases to amaze me how some online can try to twist a comment.
          Where in my comment does it say I have “lost faith?” As for pump and dump comments I’ll treat them with the disdain they deserve. If you’re not happy with Matra then sell up and move on. Trying to aportion blame for a lack of news from an A.I.M listed company on a blog is ridiculous and shows your lack of understanding as to how these companys work. I think you’ll find that Matra are still up over over 200% since the Blog first high-lighted them. Some people are never satisfied. I am stating that I am unhappy with the lack of news nothing else.


  8. CM says:

    Hey Dan,
    Re your comment SOU.L 15th Feb

    How about Sound Oil, it looks like Italy was their best bet, and it WAS worth a punt.

    Any further comments on this?

    • Brokerman says:

      Yes they are going great guns at the moment. Italy has certainly helped confidence. Well done to Sound oil. Always nice to see investors happy.


  9. Mr Jeffs says:

    Held off afta readin ya Blog which helped me to calm down thee old nerves.
    u r amazin i bet your a millionaire Dan. The info u give out has made fortunes for investors


  10. jason says:


    The sp action today, in addition to the broker upgrades released suggest to me that the brokerages are putting a lid on the price until they get hold of their quota of stock. Does it to you too?

    The news this am, in addition to their previous discoveries, imo should have put the sp back to at least its Jan/Feb price of just under 400p, with further rises to come over the next weeks or so as more information is released…

    as usual, the pi’s are made to wait until the City boys get their fill before letting the sp go.

  11. Doolally says:

    Great result for Rockhopper – it’s got a lot further to climb over the next few months.

    Good result Dan. Well done.

  12. 13thMonkey says:

    I’m interested in people’s opinions about Argos (ARG). They argue that they have very similar geology to RKH, their licence is right adjacent to RKHs and the wells drilled in 1998 in their licence had oil shows. They are undertaking 3D seismic this year to identify prospects.

    Their market cap is 10% of RKHs- surely worth a (longer term) punt?

    Opinions please.